Adjustable-rate loans, also known as variable-rate loans, usually offer a lower initial interest rate than fixed-rate loans. The interest rate fluctuates over life of loan based on market conditions, but loan agreement generally sets maximum and minimum rates. When interest rates rise, generally so do your loan payments; and when interest rates fall, your monthly payments may be lowered.

Annual percentage rate (APR) is cost of credit expressed as a yearly rate. The APR includes interest rate, points, broker fees, and certain other credit charges that borrower is required to pay.

Conventional loans are mortgage loans other than those insured or guaranteed by a government agency such as FHA (Federal Housing Administration), VA (Veterans Administration), or Rural Development Services (formerly know as Farmers Home Administration, or FmHA).

Escrow is holding of money or documents by a neutral third party prior to closing. It can also be an account held by lender (or servicer) into which a homeowner pays money for taxes and insurance.

Fixed-rate loans generally have repayment terms of 15, 20, or 30 years. Both interest rate and monthly payments (for principal and interest) stay same during life of loan.

Most mortgage brokers will tell you that if they can’t help you, no one can. That is simply not true. Every mortgage broker or mortgage lender has access to very different lending programs. A program that may be impossible for one broker can be very possible for another broker. Some mortgage brokers have access to lending companies that specialize in home mortgage loans for people with less than perfect credit that have more lenient qualifications than other sub-prime lenders do.

The key to getting approved for a home mortgage loan with poor or bad credit is persistence.